diff --git a/lib/Template/Filters.pm b/lib/Template/Filters.pm
index dd52bcc5..aa0229bf 100644
--- a/lib/Template/Filters.pm
+++ b/lib/Template/Filters.pm
@@ -521,8 +521,16 @@ sub truncate_filter_factory {
     $len  = $TRUNCATE_LENGTH unless defined $len;
     $char = $TRUNCATE_ADDON  unless defined $char;
 
-    # Length of char is the minimum length
     my $lchar = length $char;
+    my $extra = $char;
+    my $CER = '[:#_A-Za-z][:A-Za-z0-9\-\_]+';
+
+    if ($char =~ /\&($CER;)/) {
+      $extra =~ s,\&($CER;),_,g;
+      $lchar = length $extra;
+    }
+
+    # Length of char is the minimum length
     if ($len < $lchar) {
         $char  = substr($char, 0, $len);
         $lchar = $len;
diff --git a/lib/Template/Manual/Filters.pod b/lib/Template/Manual/Filters.pod
index 6c9fb571..802755ab 100644
--- a/lib/Template/Manual/Filters.pod
+++ b/lib/Template/Manual/Filters.pod
@@ -326,7 +326,7 @@ second argument.
 
 Output:
 
-    I have much to say&hellip;
+    I have much to say on this&hellip;
 
 =head1 repeat(iterations)
 
diff --git a/t/filter.t b/t/filter.t
index 1e8f17bb..5e784731 100644
--- a/t/filter.t
+++ b/t/filter.t
@@ -975,3 +975,16 @@ foo(bar)
 [% "foo(bar)" | uri %]
 -- expect --
 foo(bar)
+
+-- test --
+[% "I have much to say on this matter that has previously 
+    been said on more than one occasion." | truncate(27,"&hellip;") %]
+-- expect --
+I have much to say on this&hellip;
+
+-- test --
+[% "I have much to say on this matter that has previously 
+    been said on more than one occasion." | truncate(27,"&#x2026;") %]
+-- expect --
+I have much to say on this&#x2026;
+